Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 2): The FBM KLCI is seen trending sideways today with immediate hurdle at 1,803.

A pact between the United States and Canada to rescue the trilateral North American Free Trade Agreement with Mexico drove up global stock markets and the Canadian dollar on Monday, while weighing on safe-haven assets, according to Reuters.

The newly named United States-Mexico-Canada Agreement (USMCA) announced on Sunday preserves a $1.2 trillion open-trade zone that was on the brink of collapse after nearly a quarter century, it said.

The Dow Jones Industrial Average rose 192.9 points, or 0.73 percent, to 26,651.21, the S&P 500 gained 10.61 points, or 0.36 percent, to 2,924.59 and the Nasdaq Composite dropped 9.05 points, or 0.11 percent, to 8,037.30, it said.

MSCI's gauge of stocks across the globe gained 0.15 percent, said Reuters.

AllianceDBS Research in its evening edition Monday said the FBM KLCI had on Oct 1 traded within last Friday’s range to form an inside day bar.

It said in the absence of stronger buying or selling interest, the benchmark index was moving between the red and green zones throughout the trading sessions before settling near the day’s low at 1,792.46 (down 0.69 points or 0.04%).

“In the broader market, losers outnumbered gainers with 455 stocks ending lower and 427 stocks finishing higher. That gave a market breadth of 0.93 indicating the bears were in better control with the bulls closely matched,” it said.

AllianceDBS Research said the market made no lower low or higher high on Oct 1 with both sellers and buyers seen in a balanced position.

“This can be seen from the inside day bar formation which indicated a pause in the game play. It was indeed a surprise not seeing a lower low on Oct 1 as last Friday’s down close had indeed placed the market in a vulnerable position to move lower.

“So, the ability on the part of the benchmark index to hold the day’s low above the 1,791.10 level suggested that market participants were unwilling to play an aggressive selling game on an immediate basis for fear of sudden market rebound since the day’s low of 1,792.15 was about 2 points away from the support zone, 1,786 – 1,790,” it said.  

The research house said following the down close on Oct 1, there should be selling attempt with immediate hurdle at 1,803.

“The analysis of overall market action on Oct 1 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,792.15 level on Oct 2,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, companies in focus today may include: AppAsia Bhd, Bioalpha Holdings Bhd, Dataprep Holdings Bhd, E.A. Technique (M) Bhd, IHH Healthcare Bhd, Malaysia Airports Holdings Bhd, Mexter Technology Bhd, Prestariang Bhd, Sealink International Bhd, Taliworks Corp Bhd, Astro Malaysia Holdings Bhd and Telekom Malaysia Bhd.

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